When buying a home, particularly in fast-growing urban regions like Chennai, the stakes are high. Legal clarity, timely project delivery, builder accountability, and financial transparency can make or break your investment. That’s where RERA comes in. The Real Estate (Regulation and Development) Act, 2016, commonly referred to as RERA, was enacted to address precisely these concerns. Its goal? To bring structure, fairness, and accountability to India’s previously fragmented real estate sector.
What Is RERA?
RERA is a central law that regulates the real estate sector, ensuring transparency in project execution and protecting the interests of homebuyers. Every state and union territory has its own RERA authority. In Tamil Nadu, it’s known as TNRERA (Tamil Nadu Real Estate Regulatory Authority). The Act applies to all residential and commercial real estate projects that meet certain size or unit criteria.
If a builder is developing a project with more than eight apartments or the land area exceeds 500 sq. m., registration with RERA is mandatory.
What Protections Does RERA Offer Homebuyers?
1. Transparency in Project Details
House Builders in Chennai are now legally required to register their projects with RERA and publish all relevant information on the RERA website. This includes land title status, project layout, floor plans, carpet area, timelines for delivery, and details of approvals and contractors.
As a buyer, this means you can check the project status and legal standing before you invest. No more relying on glossy brochures or verbal promises.
2. Defined Carpet Area
Before RERA, developers often manipulated super built-up area calculations to inflate property prices. RERA standardised the definition of carpet area (the net usable floor area within the walls of the apartment), ensuring buyers know exactly what they are paying for.
3. Advance Payment Limits
Under RERA, developers can’t demand more than 10% of the property cost as an advance before signing the sale agreement. This provision protects buyers from being financially exploited at the early stages.
4. Project Delays and Compensation
This is where RERA provides one of its strongest shields. If a builder delays possession beyond the agreed timeline, buyers are entitled to compensation or a full refund with interest. In a city like Chennai, where project delays were once routine, this has significantly increased buyer confidence.
5. Use of Project Funds
Builders are required to deposit at least 70% of the funds collected from buyers into a separate escrow account, which can only be used for construction and land costs of that specific project. This prevents diversion of funds to other developments and ensures that your money is used for the home you’re buying.
6. Legal Recourse and Quick Resolution
If a builder defaults, homebuyers can file a complaint with TNRERA. The authority is bound to address disputes within 60 days. This streamlined mechanism eliminates the need for long legal battles.
7. Structural Defect Liability
If any structural defect arises within five years of possession, it is the builder’s responsibility to fix it at no cost. This provision encourages developers to maintain quality standards.
How RERA Is Changing the Game in Chennai
Before RERA, Chennai’s real estate market like much of India’s saw a wide variation in builder ethics, legal documentation, and delivery records. Now, with RERA enforcement in place, builders are more accountable, and buyers more empowered.
Newly developing areas like Pozhichalur, Pammal, Tambaram, and Sembakkam have seen a rise in RERA-registered projects, especially from developers like Viva Housing who prioritise compliance and customer trust. With rising interest from working professionals and NRIs, buyers now use RERA registration as a key filter in their homebuying decisions.
Things to Check Before You Book a Home
Even with RERA in place, your due diligence as a buyer is critical:
- Visit the official TNRERA website and search for the project registration number.
- Review all submitted approvals, sanctioned plans, and timelines.
- Verify that the sale agreement clearly reflects the carpet area, delivery dates, and clauses related to refunds or compensation.
- Ensure that the builder has no history of penalties or complaints with TNRERA.
What RERA Does Not Cover
While RERA offers strong protections, it does not apply retroactively. That means older projects (pre-2017) may not fall under its jurisdiction. Also, internal disputes within associations or the quality of fixtures might fall outside its scope and may need to be addressed through other legal channels.
Why Choose Viva Housing
Viva Housing has always believed in integrity, legal clarity, and building long-term trust. All our projects are fully RERA-registered and come with complete legal transparency. We go a step further by helping clients understand the documents, timelines, and responsibilities, making sure there are no surprises along the way.
Whether you’re buying your first apartment in Pozhichalur or investing in a growing residential zone like Madipakkam or Sembakkam, we ensure you’re legally protected and fully informed.
Looking for a new house for sale in Chennai? Looking for premium residential properties? Your journey toward a smart investment in Chennai begins with a decision. Make it count with Viva Housing, the best house builders in Chennai.
Explore our RERA-approved projects and buy a home the smart, safe way.